Rent Guarantee Scheme

Rent guarantee insurance, also known as tenant default insurance, is a common type of cover you can add onto your landlord policy. It can protect you from the serious financial implication if tenants don’t pay your rent.

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What is rent guarantee insurance?

Rent guarantee insurance is a type of landlord insurance which could cover your rental income, should your tenants be unable to pay their rent. Even the most reliable tenants can experience financial difficulties which can result in arrears.

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Landlord Legal and Rent Guarantee Scheme

Key features.

  • Cover provided residential tenancies.
  • 12 Month policy, covering up to 12 months of rent arrears.
  • Rent arrears covered up to £2,500.00 per month.
  • Legal expenses for recovery of the property.
  • All tenant types accepted.
  • 24 Hour legal helpline.

What is not insured?

  • Claims where there is no possibility of success.
  • Claims where we consider unlikely and reasonable settlement will be obtained or where the likely settled amount is disproportionate compared with the time and expense incurred.
  • Claims that are raised before the commitment of this insurance.
  • Professional fees incurred in connection with interest on rent or service charges payable by the tenant.
  • Any rent payable after you have recovered full and vacant possession.
  • Any dispute between the insured person and the letting agent.
  • Claims where a tenant reference has not been obtained.
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Why not call us on (01273) 827090 or email us at and we will be able to go through what your requirements are to your total satisfaction.

What do I have to do to get the policy?

What are the requirements?

You are asked to inform the claim within 30 days.

You must obtain a satisfactory tenant reference prior to the granting of a tenancy.

In respect of a student or DSS tenant obtain acceptance in writing from a legal insurance management approved tenants referencing company.

You must obtain a credit check against the tenant and any guarantor obtained from a licensed credit referencing company showing the following;

  1. No county court judgement in the last 3 years.
  2. No outstanding county court judgement in the last 3 years.
  3. The tenants or guarantors financial ability to meet the rent commitment (THE TENANT MUST EARN AT LEAST 30 TIMES THE RENT AND THE GUARANTOR AT LEAST 50 TIMES THE RENT)
  4. That it is reasonable in the circumstances following receipt of the outcome of credit check to grant a tenancy agreement to the tenant.
  5. Copies of two forms of identification, one of which must contain the photograph of the tenant as an individual.
  6. Adhered to the attached policy conditions.

What is the cost?

  • £225.00 including IPT for a policy with no excess.
  • £200.00 including IPT for policy one months excess.
  • £175.00 including IPT for policy with two months excess.

 Call us on 01273 827090 to discuss this further.

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More Landlord Insurance Information

What information do I need to get a quote?
You will need some very basic information in order for us to give you a quote such as:-

  • The declared value of the property
  • How you would like to pay
  • Any claims history you may have
  • What type of property it is
  • The tenancy type i.e. whether the leaseholders live there or someone rents the flats out on a short or long term basis
  • What type of cover you are looking for? We can go through this with you
  • Who the policy should be in the name of and if any mortgage providers need a there interest noted

We can help you through the process. We can provide you with a policy that can start immediately.

Landlord insurance is normally some form of umbrella with different various strands of cover bolted together for anyone who rents their home out. It can be up to you to decide what it includes although the more you cover the more it will cost.

You will get standard cover for:-

Buildings cover – this helps you to rebuild or repair your home if the structure is damaged. It could be from anything such as fire, flood etc. but they will be able to help you.

Cover for your contents – this isn’t always included as a standard cover but more than likely. If for instance somebody stole something from you other than a tenant or was damaged by fire, flood or more then the insurance company will pay out.

Loss of rent or alternative accommodation – again this isn’t a standard policy but it can be standard or an added extra. It doesn’t pay up when the tenants haven’t paid their rent. What it does is it helps you to rehouse the tenant in the event that the property is damaged to such an extent that they are unable to live at the property.

Optional extras are:-

  • Accidental damage – this is where your tenant may have accidentally spilt something on the furnishings at your property. It may be wine on a carpet etc. It is something that you would need to seriously look at and it is normally an additional extra.
  • Malicious damage – this definitely will not be included within your policy. It is extremely rare and it is normally an added item. But could you afford for you tenant to vandalize your property and you not be covered for it.
  • Legal expenses – this is when you might have a dispute with either a neighbour or a tenant. But it doesn’t mean that you will be able to claim for evicting them. It is a dispute service rather than a rent collection service.
  • Public liability – if a tenant or visitor is injured from your property. If something fell off and hit them then you would be responsible to pay out the claim and this is what the insurance company would cover you for.
  • Property damage due to the illegal cultivation of drugs – this is becoming more and more common. Where tenants have cultivated drugs at the property without your consent and you have had to reinstate your property. The cost can be hundreds of thousands and it is so important that you have this type of cover
  • Contents cover if your property is furnished – even if you do have some form of contents cover it wouldn’t cover you for the furniture. You need to ensure that you have this included if you do supply furniture. It is normally an added extra. For example basic furniture might not be expensive to replace. But where you have got a house and potentially students it could run into the thousands. It is so important that you ensure that it is covered for you.
Who occupies the property?
When taking out a policy you will be asked what your tenants do. Their occupations are categorised for ease. These are the main categories you can choose from:

  • Employees
  • Students
  • Those in receipt of housing benefits
  • Unemployed
  • Self-employed
  • Asylum seekers
  • Retired
  • A mix of the above

It matters because the type of tenant in the property will have an impact on how much you pay for landlord insurance. For instance, letting to students or those in receipt of housing benefits will result in a higher premium. This is because of assumptions made around these groups’ lack of income or low level of take-home pay. Due to this, they represent a higher risk to insurers, who worry you’ll struggle to fill your rental property. In particular, you’ll pay a much steeper premium if you want your policy to cover you for non-payment of rent.

We will always ask who is renting the property as we have certain insurers that look at some tenant types more favourably than others. It is always in our interest to find the best level of cover for the best price possible.

What if the property is vacant?
You will need to notify us if the property is vacant for more than 30 days. It won’t be a problem if this is the case. There may be an extra premium to pay due as a vacant property represents a higher risk to an insurer. Most policies will cover you for a claim if your property’s left empty for a short period, usually 30 days. Handy if you’re planning a quick renovation or kitchen overhaul. So if thieves broke in or your property suffered damage from a water leak, you’d get a pay-out. Your property may have been taken over by squatters, vandalised or damaged by fire or flood. If you don’t notify your insurer, you could find yourself uninsured and out of pocket.
Should I look at comparable websites?
Yes, you can get quotes from them, but, in all cases, insurance providers pay to be at the top of the page. You therefore wouldn’t receive or get the best possible price or cover. They are not independent. Insurers pay for the listings and they are trying to make the most out of the quote that they can. They are not in your best interest and should be avoided. It is a specialised market. Comparable websites are for general insurance such as home cover. You could be compromising on your cover that could leave you underinsured or with no insurance.
How did I get here?
Accidental landlords are growing in numbers. It could be that they have married and moved into a partner’s home and rent out their old home. Or those who inherit a property and decide to let it out rather than sell. Failing to let your insurer know or take out landlord insurance would mean that any insurance claim would be invalid.


You could ring your existing insurer which, in most cases, will simply ‘upgrade’ your ordinary home insurance policy. It takes just one phone call and there’ll usually be a higher premium to pay to reflect this greater risk.


But do this and you’ll usually find your new policy won’t include key landlord specific extras such as loss of rent or public liability.


iInsure365 are landlord insurance specialists so we understand the level of cover necessary. There are specific risks that tenanted properties are exposed to. Our experience in this field sets us apart.

Is Landlord Insurance a Legal Requirement?
There’s no legal obligation for a landlord to take out a dedicated insurance policy. But, if you have a mortgage on your property your lender will likely need proof of insurance before releasing the funds. Remember, you’ll generally need written permission from your mortgage lender to let out your property. Failure to get this may mean that you’re breaking the terms of the mortgage. Also, failing to have the correct insurance means that the landlord is liable for any damage to the building.